New Q3 data shows demand for Leeds’ city centre offices bolstered by improving economic conditions

Third quarter figures (Q3 2014) released from the Leeds Office Agents’ Forum show occupier activity in the city centre reached 143,451 sq ft over 34 deals while the out-of-town market recorded take-up of 35,305 sq ft over 16 deals.

The largest city centre office transactions to complete in Q3 2014 were the acquisition of 27,289 sq ft by The Department of Health at Bridgewater Place in Leeds and the letting of 17,500 sq ft to BSkyB at Wellington Place.  In total, city centre take-up saw a 42 percent increase compared with the same quarter last year.

Activity in the Leeds’ out-of-town office market remained muted. The freehold acquisition of Monarch House by MAC Plc, which totalled 7,278 sq ft, was the largest sized deal to complete in the third quarter.

Dan Hodge, associate at Ryden and spokesperson for the Forum, said: “The continued strengthening of the economy and growth in employment has bolstered occupational demand and enquiries for offices in the city centre offices remains strong.  While confidence is building it is evident that many occupiers remain cautious, but are increasingly aware that supply for the best space is limited. As a consequence of the low level of supply, the Forum anticipates a further tightening of incentives as well as rental growth in some sectors by the year end.”

Dan continued: “The announcement this month that Squire Patton Boggs is to become the first occupier at 6 Wellington Place, as well as a number of other potential pre-lets, means that year-end city centre take-up is anticipated to comfortably exceed 500,000 sq ft.”

The Leeds Office Agents’ Forum was established by the leading surveying firms based in Leeds to collate and distribute definitive market data.  Its members are BNP Paribas, Carter Towler, CBRE, Colliers International, DTZ, Eddisons, Fox Lloyd Jones, GVA, JLL, Knight Frank, Lambert Smith Hampton, Ryden, Sanderson Weatherall, Savills and WSB.